From Earlier: Unlawful Attempt by EGAS and EGPC to Terminate EMG Gas Supply Agreement

Ampal-American Israel Corporation

announced yesterday that it has been advised by East Mediterranean Gas Co., in which Ampal has a 12.5% interest, that Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company notified EMG that they were terminating the Gas Supply and Purchase Agreement between the parties. EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal. EMG, Ampal, and EMG's other international shareholders are considering their options and legal remedies as well as approaching the various Governments.